10:28 - 17.08.2026

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August 17, Fineko/abc.az. According to Goldman Sachs Group Inc., market expectations for further rate hikes by the U.S. Federal Reserve remain overly aggressive as inflation pressures continue to cool.

Jan Hatzius, Chief Economist at Goldman Sachs, stated in a note to clients that weak retail sales, disappointing employment data, and slowing inflation make a rate increase at the Fed's September meeting "extremely unlikely". Hatzius highlighted that under current economic conditions, inflation is more likely to continue easing rather than reaccelerate over the remainder of the year, making current market hawkishness excessive.

According to Bloomberg data, investors have pushed back expectations for the Fed's next 25-basis-point rate hike to January, down from nearly fully pricing in a December move just a week ago. Goldman Sachs notes that despite this recent softening, rate hike expectations could be dialed back even further.